Work From Home, Lower Speeds: Steps to Ease Rising Fuel Costs

IEA Recommends Remote Work, Lower Speed Limits to Tackle Global Oil Shock​

Middle East Disruptions Push Oil Prices Above $100 per Barrel​

New Delhi, March 20
The International Energy Agency (IEA) has proposed a series of immediate demand-side measures such as remote working, reduced speed limits, and lower air travel to counter the impact of a historic global oil supply disruption triggered by tensions in the Middle East.

Oil prices have surged past $100 per barrel following attacks by the United States and Israel on Iran, along with Tehran’s retaliatory response. The situation has severely disrupted shipping through the Strait of Hormuz, a critical global energy transit route.

Strait of Hormuz Disruption Hits Global and Indian Energy Supply​

According to the IEA, the conflict has led to the largest supply disruption in the history of the global oil market, with shipping traffic through the Strait of Hormuz slowing significantly.

Typically, around 15 million barrels of crude oil and 5 million barrels of oil products pass through the Strait daily, accounting for nearly 20 percent of global oil consumption. For India, the impact is particularly significant, as about half of its crude oil imports, 40 percent of gas imports, and up to 90 percent of LPG shipments rely on this route.

The agency noted that these flows have now reduced sharply, pushing up global prices for crude oil and refined products such as diesel, jet fuel, and LPG.

Rising Energy Costs Pose Economic Risks for India​

India, which imports nearly 88 percent of its crude oil requirements, faces growing macroeconomic risks due to rising global prices. These include a widening current account deficit, pressure on the rupee, and increased fuel costs for households and businesses.

While petrol and diesel prices remain unchanged for now, the price of LPG has already been increased by ₹60 per cylinder.

IEA Suggests 10 Measures to Cut Fuel Demand​

To manage the crisis, the IEA has outlined 10 key actions aimed at reducing fuel consumption across governments, businesses, and households.

Key recommendations include:

• Promoting remote work to reduce commuting-related fuel use
• Lowering highway speed limits by at least 10 km per hour
• Encouraging public transport and carpooling
• Restricting private vehicle access in major cities

Additional steps involve improving driving efficiency, reducing business air travel, limiting non-essential LPG usage, and enhancing industrial fuel efficiency.

Demand Reduction Could Significantly Lower Oil Consumption​

The IEA highlighted that increasing remote work by three additional days per week for eligible workers could reduce oil consumption from cars by 2 to 6 percent, with individual drivers potentially cutting usage by around 20 percent.

Reducing highway speed limits by 10 km per hour could lower individual fuel consumption by 5 to 10 percent and overall private car oil use by up to 6 percent. Freight trucks could see savings of around 5 percent.

Shifting from private vehicles to public transport could reduce national oil consumption for cars by 1 to 3 percent. Meanwhile, cutting business air travel by about 40 percent could lower jet fuel demand by 7 to 15 percent.

Emergency Measures and Market Stabilization Efforts​

The IEA emphasized that restoring transit through the Strait of Hormuz remains critical for stabilizing global energy markets. In response to the crisis, member countries have already released 400 million barrels from emergency reserves, marking the largest coordinated release in the agency’s history.

The agency added that while governments may introduce relief measures to protect vulnerable consumers, limited fiscal capacity means such support must be targeted. Demand reduction, it said, will play a central role in managing the ongoing energy crisis.